Teva, Allergan to divest generic products to Impax for roughly $586 million

Impax Laboratories said Tuesday that it signed definitive agreements totalling about $586 million with Teva and Allergan to purchase "a broad portfolio" of generic products, including 15 currently sold generics and multiple drugs in the pipeline. The deal, which also calls for Impax to re-acquire full commercial rights to its pending FDA filing for a generic version of Johnson & Johnson's attention-deficit hyperactivity disorder drug Concerta (methylphenidate), a product previously partnered with Teva, is part of the divestiture process ordered by the US Federal Trade Commission (FTC) in connection with Teva's planned $40.5-billion acquisition of Allergan's global generics business. 

"The anticipated acquisition of these currently marketed and pipeline products fits with our strategic priorities of maximising our generic platform, optimising R&D and accelerating business development to create long-term growth," remarked Impax CEO Fred Wilkinson. He added that the deal will allow Impax to "[expand] our portfolio of difficult-to-manufacture or limited-competition products and [maximise] utilisation of our existing manufacturing facilities in Hayward, California, and in Taiwan." 

Impax said the currently marketed products it gains as part of the deal generated about $150 million in combined net revenue last year. Citing IMS Health data, the company also estimated that the pending and development pipeline programmes had US brand and generic sales of approximately $3.1 billion for the 12 months ended March 31. 

Impax also updated its financial guidance for 2016, now projecting that adjusted earnings per share will increase at least 20 percent, compared with at least 10 percent previously, whereas analysts are forecasting 9-percent growth. Meanwhile, the company maintained its sales outlook of an increase of at least 15 percent over last year. Impax added that closing of the deal, which it expects will be immediately accretive, is expected to coincide with the closing of Teva and Allergan's generics transaction.

Teva recently agreed to divest the US rights to eight therapies to Dr. Reddy's Laboratories for $350 million, as well as a portfolio of five abbreviated new drug applications in the US to Sagent Pharmaceuticals for $40 million, in its bid to gain FTC approval for the Allergan deal. The Israeli drugmaker suggested in March that closing of the transaction, which has already been cleared by the European Commission, would be delayed pending approval by antitrust regulators in the US.

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